STORAGE MODULARS BUSINESS VISION TECHNOLOGY: DRAM, ENTERPRISE-LEVEL SD SUPPLY AND DEMAND IMBALANCE UNTIL AT LEAST THE FIRST HALF OF NEXT YEAR

ON 27 JULY, ZHANG JIA ZHANG, EXECUTIVE DIRECTOR, TECHNOLOGY AND TECHNOLOGY, TAIWAN’S STORAGE MODELS COMPANY, RECENTLY STATED THAT, WITH THE ALMOST FULL DEPLOYMENT OF NEW CAPACITY AT THE WORLD’S THREE MAJOR DRAM PLANTS, SUPPLY FROM THE GENERAL MARKET CONTINUED TO DECLINE AND SUPPLY AND DEMAND IMBALANCES REMAINED DIFFICULT TO ALLEVIATE IN THE SHORT TERM. HE STATED THAT THE NEW CAPACITY AT THE THREE MAJOR DRAM PLANTS AROUND THE WORLD WAS ALMOST FULLY INVESTED IN PRODUCTS SUCH AS HBM, SERVER DDR5 AND LPDDR5X, AND THAT THE PARTICULATES ALLOCATED TO THE GENERAL DDR5, DDR4 AND INDUSTRY-CONTROLLED MARKETS CONTINUED TO DECLINE, AND THAT THE BIGGEST CHALLENGE FACING THE MOOT PLANTS WAS NOT PRICE, BUT SUPPLY. HE INDICATED THAT, ACCORDING TO THE ORIGINAL PLANT SUPPLY PLAN, THE FUTURE SUPPLY OF DRAM THAT COULD BE ALLOCATED TO THE MODULAR PLANT WOULD CONTINUE TO DECLINE, NOT ONLY AT A CONTINUING HIGH PRICE, BUT ALSO AT VARIOUS MODEL PLANTS, WHICH WERE ACTIVELY BUILDING UP STOCKS TO AVOID THE RISK OF UNSOLD IN THE FUTURE. HE SAID THAT EVEN IF THE PROCUREMENT COSTS WERE HIGH, THE GOODS HAD TO BE PREPARED IN ADVANCE BECAUSE THEY WERE EXPENSIVE AND BUSINESS COULD NOT BE DONE WITHOUT THEM. ZHANG JIA? ACCORDING TO ZHANG JIA, IT IS NOW MORE CERTAIN THAT THE TREND OF TIGHT SUPPLY UNTIL THE FIRST HALF OF 2027 IS STILL FAIRLY CLEAR, AND THAT, AFTER THE SECOND HALF OF 2027, IT WILL STILL BE NECESSARY TO OBSERVE THE EXPANSION OF FORMER PLANTS AND CHANGES IN AI DEMAND。